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How to Launch a Business Without Spending a Dime

How to Launch a Business Without Spending a Dime
Money

The biggest mistake I see first time entrepreneurs make is that they spend too much money.

They rent an office or retail location, pay big incorporation fees, hire employees, and build an expensive website (just to name a few). And all before they’ve earned their first dollar!

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Each month their cash reserves get lower and lower while they struggle to make sales to cover their expenses. Eventually the fledgling business dies with no cash flow, leaving the owner hurt emotionally and financially.

Luckily, it is possible (and actually quite simple) to start up a business without spending a dime. The beauty of using this method is that you can test out a new business idea quickly and with zero risk. And instead of spending time negotiating leases or dealing with employees, you can spend 100% of your time on the most important thing: making that first sale!

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The first thing you’ve got to do is get past the idea of spending. Work out of your home or Starbucks on nights and weekends. Instead of hiring employees just get started with what you can do yourself, or ask friends for help. Don’t incorporate just yet, be a sole proprietorship. Don’t hire an expensive graphic artist to make your logo, stick with something simple…you get the idea.

You can spend money on all that stuff once you are bringing in revenue!

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Now to actually get started, here are 10 steps you can use to launch a new business, without spending a dime. The first five are logistical. The last five are all free ways to market your business (after all, the most important step is bringing in that first sale!)

  1. Get an EIN at the IRS website
    This one is specific to the USA, but all companies need an Employer Identification Number (EIN). You can apply for one online at the irs.gov in about 5 minutes by clicking here. List yourself as a sole proprietor for now.
  2. Setup Your Business Financials
    Get a free business checking account. This will allow you to keep your business’s money separate and track it (vitally important!). I like Washington Mutual’s free business checking. They will also give you a debit card to track your expenses (never use a credit card) which are currently zero! Then get a Paypal account and link it to your business account so you can accept payments.
  3. Choose a domain name
    The fastest ways to get eyeballs on your new business is the internet these days. Choose a domain name that is a keyword phrase your potential customers might type into a search engine. So if you are offering salsa lessons in Boston, you might choose “SalsaLessonsBoston.com”. The benefit of doing this is that you will most likely end up on the first page of Google results for that keyword phrase within a month or two. This will bring your customesr, and is much better than showing up on the first page for “John Smith’s Salsa Company” or something that no one ever searches for.
  4. Make a simple website
    The fastest way I know of to launch a website is using WordPress (wordpress.com or wordpress.org). If you don’t mind using a subdomain like “mydomain.wordpress.com” it’s free. But even if you want your own domain you can get one with WordPress pre-installed for about $70/year. WordPress comes with over 2500 “themes” to change the look and a great back end interface to edit the pages just like you’re in Microsoft word. LifeHack.org uses WordpPress as do many other popular sites.
  5. Set Your Prices
    Most first time entrepreneurs set their prices too low. People assume low prices mean low quality, and you are worth more. Give away your product or service to the first five customers free if you’d like (it will help built buzz and you can ask them for testimonials), but after that set your price in the top 1/3 of your industry. It’s always easier to lower them than to raise them.
  6. Start Marketing on CraigsList.com
    The next five steps are all free marketing. Start by making regular posts on Craigslist.com. This is a free classified website that attracts millions of viewers. You can get some traffic to your website instantly by making some posts here, and you should continue to repost them every few days.
  7. Start a Meetup.com Group
    Meetup.com helps people with similar interests get together. If a group exists in your area with potential customers, join it. Try to be invited as a guest speaker and offer value to members of the group (don’t pitch them). Just by making friends and helping out you will start to bring in business. If a MeetUp group for your topic doesn’t exist yet, that’s even better. Start one up! You’ll be viewed as the authority in the area.
  8. Post a Video to YouTube.com
    YouTube is a video sharing website, and it gets ridiculous amounts of traffic. It’s actually easier to make a video than you think, and it doesn’t have to be professional at all. You can record one with your digital camera, make a screen recording of your computer (even a powerpoint presentation) with software like Camtasia, or purchase a $20 webcam. Teach or show something useful, and include a link to your site at the end of the video. You will get traffic!
  9. Network
    Send an email to all your friends and family (and really everyone on your contact list) telling them about the business you just started. Put a note at the end asking them to forward the note to anyone they know who might be interested (and tell them about the free offer for the first five customers). You’ll not only reach your network, but you’ll reach your network’s network (an exponential difference). You should also get people’s business cards that you meet (far more effective than giving them since few people will write you back) and offer to help them.
  10. Write an Article and Give it Away!
    Even if you aren’t a writer, you can put together a great article. Think of something your potential customers might want to know. Then write a “top ten” list (e.g. the top ten beginner salsa moves) or a “ten step” format (e.g. the then steps to learning salsa basics). Contact the owners of a dozen different websites that your potential customers might visit, and see if they’d like to use your article for free. Include a link to your website at the bottom in the “About the Author” section.

Using this simple format you can launch a new business in about a month, and hopefully make your first sale. But the best part is, even if it doesn’t work, you’ve learned a priceless lesson and risked little or no money.

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Don’t spend a single red cent that isn’t absolutely required when launching a new business! See if your idea works first, and then spend AFTER you’ve made your first sale!

Brian Armstrong is the author of Breaking Free, which shows how to quit your job and start your first business! You can download three FREE chapters of the book and sign up for his FREE online course

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Last Updated on June 26, 2019

How to Stop Procrastinating: 11 Practical Ways for Procrastinators

How to Stop Procrastinating: 11 Practical Ways for Procrastinators

You have a deadline looming. However, instead of doing your work, you are fiddling with miscellaneous things like checking email, social media, watching videos, surfing blogs and forums. You know you should be working, but you just don’t feel like doing anything.

We are all familiar with the procrastination phenomenon. When we procrastinate, we squander away our free time and put off important tasks we should be doing them till it’s too late. And when it is indeed too late, we panic and wish we got started earlier.

The chronic procrastinators I know have spent years of their life looped in this cycle. Delaying, putting off things, slacking, hiding from work, facing work only when it’s unavoidable, then repeating this loop all over again. It’s a bad habit that eats us away and prevents us from achieving greater results in life.

Don’t let procrastination take over your life. Here, I will share my personal steps on how to stop procrastinating. These 11 steps will definitely apply to you too:

1. Break Your Work into Little Steps

Part of the reason why we procrastinate is because subconsciously, we find the work too overwhelming for us. Break it down into little parts, then focus on one part at the time. If you still procrastinate on the task after breaking it down, then break it down even further. Soon, your task will be so simple that you will be thinking “gee, this is so simple that I might as well just do it now!”.

For example, I’m currently writing a new book (on How to achieve anything in life). Book writing at its full scale is an enormous project and can be overwhelming. However, when I break it down into phases such as –

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  • (1) Research
  • (2) Deciding the topic
  • (3) Creating the outline
  • (4) Drafting the content
  • (5) Writing Chapters #1 to #10,
  • (6) Revision
  • (7) etc.

Suddenly it seems very manageable. What I do then is to focus on the immediate phase and get it done to my best ability, without thinking about the other phases. When it’s done, I move on to the next.

2. Change Your Environment

Different environments have different impact on our productivity. Look at your work desk and your room. Do they make you want to work or do they make you want to snuggle and sleep? If it’s the latter, you should look into changing your workspace.

One thing to note is that an environment that makes us feel inspired before may lose its effect after a period of time. If that’s the case, then it’s time to change things around. Refer to Steps #2 and #3 of 13 Strategies To Jumpstart Your Productivity, which talks about revamping your environment and workspace.

3. Create a Detailed Timeline with Specific Deadlines

Having just 1 deadline for your work is like an invitation to procrastinate. That’s because we get the impression that we have time and keep pushing everything back, until it’s too late.

Break down your project (see tip #1), then create an overall timeline with specific deadlines for each small task. This way, you know you have to finish each task by a certain date. Your timelines must be robust, too – i.e. if you don’t finish this by today, it’s going to jeopardize everything else you have planned after that. This way it creates the urgency to act.

My goals are broken down into monthly, weekly, right down to the daily task lists, and the list is a call to action that I must accomplish this by the specified date, else my goals will be put off.

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4. Eliminate Your Procrastination Pit-Stops

If you are procrastinating a little too much, maybe that’s because you make it easy to procrastinate.

Identify your browser bookmarks that take up a lot of your time and shift them into a separate folder that is less accessible. Disable the automatic notification option in your email client. Get rid of the distractions around you.

I know some people will out of the way and delete/deactivate their facebook accounts. I think it’s a little drastic/extreme as addressing procrastination is more about being conscious of our actions than counteracting via self-binding methods, but if you feel that’s what’s needed, go for it.

5. Hang out with People Who Inspire You to Take Action

I’m pretty sure if you spend just 10 minutes talking to Steve Jobs or Bill Gates, you’ll be more inspired to act than if you spent the 10 minutes doing nothing. The people we are with influence our behaviors. Of course spending time with Steve Jobs or Bill Gates every day is probably not a feasible method, but the principle applies.

Identify the people, friends or colleagues who trigger you – most likely the go-getters and hard workers – and hang out with them more often. Soon you will inculcate their drive and spirit too.

As a personal development blogger, I “hang out” with inspiring personal development experts by reading their blogs and corresponding with them regularly via email and social media. It’s communication via new media and it works all the same.

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6. Get a Buddy

Having a companion makes the whole process much more fun. Ideally, your buddy should be someone who has his/her own set of goals. Both of you will hold each other accountable to your goals and plans. While it’s not necessary for both of you to have the same goals, it’ll be even better if that’s the case, so you can learn from each other.

I have a good friend whom I talk to regularly, and we always ask each other about our goals and progress in achieving those goals. Needless to say, it spurs us to keep taking action.

7. Tell Others About Your Goals

This serves the same function as #6, on a larger scale. Tell all your friends, colleagues, acquaintances and family about your projects. Now whenever you see them, they are bound to ask you about your status on those projects.

For example, sometimes I announce my projects on The Personal Excellence Blog, Twitter and Facebook, and my readers will ask me about them on an ongoing basis. It’s a great way to keep myself accountable to my plans.

8. Seek out Someone Who Has Already Achieved the Outcome

What is it you want to accomplish here, and who are the people who have accomplished this already? Go seek them out and connect with them. Seeing living proof that your goals are very well achievable if you take action is one of the best triggers for action.

9. Re-Clarify Your Goals

If you have been procrastinating for an extended period of time, it might reflect a misalignment between what you want and what you are currently doing. Often times, we outgrow our goals as we discover more about ourselves, but we don’t change our goals to reflect that.

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Get away from your work (a short vacation will be good, else just a weekend break will do too) and take some time to regroup yourself. What exactly do you want to achieve? What should you do to get there? What are the steps to take? Does your current work align with that? If not,what can you do about it?

10. Stop Over-Complicating Things

Are you waiting for a perfect time to do this? That maybe now is not the best time because of X, Y, Z reasons? Ditch that thought because there’s never a perfect time. If you keep waiting for one, you are never going to accomplish anything.

Perfectionism is one of the biggest reasons for procrastination. Read more about why perfectionist tendencies can be a bane than a boon: Why Being A Perfectionist May Not Be So Perfect.

11. Get a Grip and Just Do It

At the end, it boils down to taking action. You can do all the strategizing, planning and hypothesizing, but if you don’t take action, nothing’s going to happen. Occasionally, I get readers and clients who keep complaining about their situations but they still refuse to take action at the end of the day.

Reality check:

I have never heard anyone procrastinate their way to success before and I doubt it’s going to change in the near future.  Whatever it is you are procrastinating on, if you want to get it done, you need to get a grip on yourself and do it.

More About Procrastination

Featured photo credit: Malvestida Magazine via unsplash.com

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